TaxTMI 
TaxTMI 
2014 (2) TMI 1246
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....ily:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-fareast-language:EN-US;} S/SHRI B. R. BASKARAN, AM & AMIT SHUKLA, JM For the Appellant : Sh Divyesh I Shah For the Respondent by : Sh Ashok Suri, DR O R D E R PER B R BASKARAN,AM : The appeal filed by the assessee is directed against the order dated 20.6.2011 passed by the Ld CIT(A)-20, Mumbai and it relates to the AY 2005-06. 2 At the time of hearing, the ld counsel for the assessee did not press ground no.3 and in that regard be has also made necessary endorsement in the grounds of appeal by affixing his signature. Accordingly, the said ground is dismissed as not pressed. Ground no.5 is general in nature....
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....st u/s 234B and 234C of the Act. However, the assessee did not get any relief from ld CIT(A) and hence, the assessee has filed the present appeal before us. 4 The first issue relates to the validity of reopening of the assessment. According to Ld A.R, the AO has re-opened the assessment only by virtue of a retrospective amendment brought into the Act by Finance (No.2) Act, 2009 in section 115JB of the Act, where by the provision made for diminution in the value of assets is also required to be added to the net profit while computing "Book Profit" u/s 115JB of the Act. The Ld A.R submitted that the assessee did not add the "Provision made for bad and doubtful debts" while computing the book profit, since the provision for diminution in the ....
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....; since the original return of income was processed only u/s 143(1) of the Act. We also notice that the ld CIT(A) also placed reliance on the decision of the Hon'ble Bombay High Court in the case of Rallies India Ltd (citation not given). 4.3 In the instant case, we have already noticed that the return of income has been processed only u/s 143(1) of the Act. Hence, in our view, the decision rendered by Hon'ble Supreme Court in the case of Rajesh Jhaveri Stock Brokers (supra) squarely applies in the instant case. The Ld A.R placed reliance on the decision of Co-ordinate Mumbai bench in the case of Aipitia Marketing (P) Ltd to contend that the re-opening of assessment is not valid, even if the return had been processed u/s 143(1) of the Ace,....
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....omputing total income under normal provisions of the Act. In the instant case, we are concerned with the provisions of sec. 115JB, wherein the book profit is required to be computed from the audited accounts prepared under the provisions of the Companies Act. Under the accounting principles, on the basis of which the accounts are prepared under the Companies Act, the terms "Bad debts" and the "Provision for bad and doubtful debts" have distinct meaning and has got different accounting treatment. Hence, in our view, the decision rendered by Hon'ble Supreme Court in the case of Vijaya Bank (supra) under the normal provisions of Income tax Act, cannot be applied to the provisions of sec. 115JB of the Act. We notice that the Co-ordinate bench i....
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....the Co-ordinate benches have taken the view that the interest u/s 234B and 234C cannot be charged for default in payment of advance tax and for deferment of advance tax where payment of tax became due only because of retrospective amendment. The following observations made by the Delhi bench of Tribunal in the case of Uttam Sugar Mills are extracted, for the sake of convenience:- "7. The question is as to whether interest u/s 234B and 234C of the Act can be charged for default in payment of advance tax and for deferment of advance tax, respectively, where the payment of tax became due only because of the amendment by way of insertion of Explanation 1(h) to sec. 115JB(2) of the Act, the amendment having been made operative retrospectively. ....